1. TRADE BLOC’S

2. WHAT IS A TRADE BLOC? A trade bloc is a large free trade area formed by one or more tax, tariff and trade agreements. Typically trade pacts that define such a bloc specify formal adjudication bodies, e.g. NAFTA trade panels. This may include even a more democratic and participative system, as the EU.

3. HOW DOES IT WORK - TARIFFS A tariff is a tax on foreign goods upon importation. When a ship arrives in port a customs officer inspects the contents and charges a tax according to the tariff formula

4. An import quota is a type of protectionist trade restriction that sets a physical limit on the quantity of a good that can be imported into a country in a given period of time. For example, a country might limit sugar imports to 50 tons per year. Quotas, like other trade restrictions, are used to benefit the producers of a good in a domestic economy at the expense of all consumers of the good in that economy. HOW DOES IT WORK - QUOTAS

5. TASK USING THE TABLE PLOT A MAP TO SHOW THE MEMBERSHIP OF THESE MAIN TRADING BLOCS. WHAT DO YOU NOTICE ABOUT YOUR MAP?

6. HOMEWORK COMPILE AN A4 SUMMARY OF THE BANANA WARS – AN EXAMPLE OF TRADE BLOCS IMPACT. –The Banana Trade - who grows the most, who exports the most, who imports the most? –What were the Banana Wars? Why did the USA get so upset? –What role did the WTO (World Trade Organisation) play in the 'wars'? –What were the impacts of the Banana Wars on the UK and France? –What part did 'Trade Tariffs' and 'Trade Subsidies' play in the Banana Wars? –What is the Lome Convention and what part did it play in the Banana Wars?